The major elements of the income statement are
A) revenue, cost of goods sold, selling expenses, and general expense.
B) operating section, nonoperating section, discontinued operations, extraordinary items, and cumulative effect.
C) revenues, expenses, gains, and losses.
D) revenues, irregular items, and general expenses.

Question

Quizplus · Accepted Answer

The major elements of the income statement are revenues, expenses, gains, and losses. Revenue represents the inflows of economic resources resulting from the sale of goods or rendering of services. Expenses represent the outflows of economic resources incurred in generating revenue. Gains and losses represent non-operating activities that are not part of the main operations of the business, such as the sale of a long-term asset or a loss from a natural disaster.

The Major Elements of the Income Statement Are